Laura L.

Miller
May 2002

Using Oracle Project Manufacturing Without Oracle Projects

Project Manufacturing supports Seiban manufacturing. Seiban manufacturing is a
method of manufacturing developed by the Japanese. The word Seiban comes
from the Japanese words Sei which means manufacturing and ban which means
number. A Seiban number is assigned to all items, materials, and purchase orders
associated with a particular project. This can be utilized when using Project
Manufacturing without Oracle Projects being installed.
The Seiban Number Wizard defines Project Numbers used by Project
Manufacturing when Oracle Projects is not installed. With this option, task level
control is not supported and neither is cost collection to Oracle Projects. This option
can be used in organizations that utilize standard or weighted average costing. If
using Weighted Average Costing, the cost of the item is tracked by item and by cost
group for all manufacturing costs associated with the Project (Seiban) Number.
The features in Project Manufacturing that can be used without Oracle Projects
installed include the following:
Project Definition
Project numbers are defined in Project Manufacturing not in Projects. Since
no Work Breakdown Structure (WBS) can be established without Projects installed,
no tasks can be associated with the Project Numbers. Also, if the organization is
using Weighted Average Costing, the Project Number needs to be associated to a
cost group and also a WIP Accounting class.
Project Demand
Project Manufacturing allows demand to be entered into the system using a
Project Number. This demand comes from a forecast, sales order or Master
Demand/Master Production Schedule. This will cause the system to perform the
planning, execution and costing for the demand.
Project Planning
Project Manufacturing can execute the planning cycle for one organization or
an entire supply chain. Project and common items are planned together in a cycle.
In planning, the features of hard and soft pegging, group netting, online supply and
demand simulations and Project exceptions can be used.
The Project exceptions, horizontal plan, supply and demand, and released
planned orders can all be viewed using the Planners Workbench

Project Supply/Execution
Project Manufacturing supports all planned orders that are a result of the
planning cycle. These include WIP jobs, Flow schedules, purchase
requisitions/blanket releases and internal orders.
Project Procurement
The project references (no task references allowed) are supported in all
procurement entities except for Expense destinations. Also, commitments for a
project cannot be viewed, as this feature is functional only within the Oracle Projects
module.
Project Work in Process
WIP jobs, both standard and non-standard, are supported in Project
Manufacturing. Outside Processing functionality can use the Project Number as the
reference. The Project Number can also be linked to a flow schedule (workorderless).
Project Inventory
Project Number can track inventory. Miscellaneous transactions can also be
performed using the Project Number in Project Manufacturing.

Project Quality
Quality information can be tracked in Project Manufacturing using the Project
Number. The Data Collection can be analyzed. Quality specifications can be
established. These specifications are also based on the Project Number.
Project Costing
If the organization is using Weighted Average Costing, then cost groups
must be associated to each project. These cost groups will hold the cost
distributions that occur during the manufacturing process. The costs are tracked by
item in each cost group.
If the organization is using standard costing, the manufacturing cost will be
tracked at the item level. No cost groups are associated and used for costs. This
functionality changes in Oracle Applications Release 11.5.7 as standard costing in
Project Manufacturing environments will utilize cost groups.
Project Analyst and Control
The Project Manufacturing Web Workbench can be used to analyze
manufacturing information. Other reports that can be used for analysis are the
Inventory Valuation and WIP Valuation reports.
The Project Expenditure Inquiry and the Project Status Inquiry are not
available for analysis, as they are part of Oracle Projects.

Project Billing
For Project Manufacturing without Projects involved, the billing activities are
pushed into Receivables through the Order Management module. The Receivable
Interface process is used to pass the sales order line information to Receivables.
The billing process then is completed in Receivables using standard procedures.
Project Revenue Recognition
Revenue is recognized in the Receivable module. Information is transferred
from Order Management into Receivables using the AutoInvoice Import process.
Invoices, debit memos and credit memos are also transferred into Receivables for
recognition. The Revenue Recognition is then run to generate the records in
Receivables.

Basic Setup Steps:

1.
2.
3.
4.
5.
6.
7.

8.

Setup the organization (in the Human Resources module)

Setup the organization hierarchy (in the Human Resources module)
Setup Inventory organization parameters (in Inventory module)
Setup Departments in manufacturing (in Bill of Material module)
Setup Project Parameters (in Project Manufacturing module)
Verify Project Control level in Organization Parameters is set to Project
Verify Project Cost Collection in organization parameters is DISABLED.
This is because no costs can be transferred to Projects (since it is not
installed and/or being used)
Verify Project Numbers are defined in the Define Seiban Number form (in
Project Manufacturing module)

Reference Material and more information:

Oracle Project Manufacturing Implementation Manual Release 11i